Work Expenses as Tax Deduction
You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% of adjusted gross income limit. These are expenses you pay:
- To produce or collect income that must be included in your gross income,
- To manage, conserve, or maintain property held for producing such income, or
- To determine, contest, pay, or claim a refund of any tax.
You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. These other expenses include the following items:
Appraisal Fees for a Casualty Loss or Charitable Contribution
Appraisal fees can be deducted if you pay them for a casualty loss or the fair market value of donated property.
Additional information about appraisal fees.
Casualty and Theft Losses From Property Used in Performing Services as an Employee
A casualty is the complete or partial destruction of property resulting from an identifiable event of a sudden, unexpected, or unusual nature. It must be due to external cause, rather than to a defect in the product itself. A theft is the unlawful taking of property. A casualty or theft loss, as a miscellaneous itemized deduction, can be deducted, but is subject to the 2% limit if the damaged or stolen property was used for performing services as an employee.
Information about casualty and theft losses.
Clerical Help and Office Rent in Caring for Investments
If you have office expenses, such as rent and clerical help, in connection with your investments and collect the taxable income on them, they may be deducted.
Clerical help and office rent details.
Legal Fees Related to Producing or Collecting Taxable Income or Getting Tax Advice
You can generally deduct legal expenses that are paid to produce or collect taxable income or that you pay in relation to the collection or refund of any tax.
You can also deduct legal expenses that are:
- Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges against your trade or business,
- For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or
- For the collection of taxable alimony.
You can deduct expenses of resolving tax issues relating to profit or loss from business, rentals or royalties, or farm income and expenses on the appropriate schedule.
More information about collecting taxable income.
Repayments of Income
If you had to repay an amount that you included in your income from an earlier year, you may be able to deduct what you repaid. If you had to repay ordinary income of $3,000 or less, the deduction is subject to the 2% limit.
Repayment of income information.
See what other tax deductions you may qualify for.